2010 Housing Stimulus Tax Credits

You’ve probably heard about some of the Housing Stimulus that has been created in recent months. The proper role of government in such efforts is worthy of discussion. But in this post I’d like to outline the specifics of the tax credits so you can figure out if they apply to you.

First-Time Homebuyers

What is a “first time homebuyer”? According to the government, it’s not necessarily someone who has never purchased a home. In government-speak (in this case, as least) it’s someone who hasn’t owned a home for three years. (We sold our old home in January of 2007 and closed on the new one in November 2009. Missed that window.)

To qualify your home must cost $800,000 or less and have a binding contract by April 30, 2010. You can’t make more than $125,000 if you’re single or $225,000 if you’re married.

Bottom line: $8,000 credit.

Current Qualifying Homebuyers

What is a “current qualifying home buyer”? According to the government, it’s someone who is or has moved out of a house that they owned consecutively for five of the past eight years. (We moved in our last home in July of 2003 and sold it in January of 2007. Missed that window.)

To qualify your home must cost $800,000 or less and have a binding contract by April 30, 2010. You can’t make more than $125,000 if you’re single or $225,000 if you’re married.

Bottom line: $6,500 credit.

Do You Qualify?

The basics are pretty simple although — as with all bureaucratic issues — there is fine print to read. If you think these might apply to you, check with your mortgage broker and your accountant.

This is great news! I’m hoping the housing market continues to pick up. I’m actually in the process of closing on a house in the SF Bay Area, and it is my first home! So this will be helpful!
.-= Victor hopes you’ll read The Company of Myself =-.